Xanadu

TP/15

TP/15 is located in the offshore northern Perth Basin approximately 280km north of Perth. The permit occupies the 3 nautical mile wide state territorial waters of Western Australia, adjacent to Port Denison, and covering an area of 645km2. NWE is planning to drill a well on the Xanadu prospect, located at the southern end of TP/15, and holds an un-risked best estimate prospective recoverable resource of 160MMbbls (see NWE ASX announcement dated 10 February 2017 for ASX Listing Rule 5.25.3 requirements).

Xanadu is located on Beagle Ridge, east of the major Geraldton fault. Xanadu is one of the few remaining untested structures along this trend. The oil generation kitchen filling Triangle Energy Limited’s (ASX:TEG) Cliff Head Oil Field is viewed as the same source kitchen for the Xanadu prospect. Cliff Head and Xanadu also share the same sand packages and target reservoirs. The technical understanding of the Xanadu prospect including reservoir seal and trap dynamics, is greatly enhanced by the analogous Cliff Head Oil Field.